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CCRs for Collections / Loss Recovery Processes

Six Sigma – iSixSigma Forums Industries Financial Services CCRs for Collections / Loss Recovery Processes

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  • #53332

    murphy
    Participant

    Has anyone done a 6 sigma project in collections or more specifically loss recovery and been able to draft critical customer requirements? I am going for my belt certification and my instructor unfortunately is from manufactoring and doesn’t much about the services industries. I just want to be sure I am not missing something before I tell him that our loss recovery dept is not actually focused on the customer’s wants/needs. thanks.

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    #189670

    B2B
    Participant

    are you working for a stand alone collections agency or a banking institution in a collections department?

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    #189674

    Wallace
    Participant

    I work at a financial institution and am a Certified SixSigma Greenbelt. I am currently working on a project with my loss prevention and recovery department. When I began my journey in six sigma several years ago, I initially struggled with “the customer” always having to be the external customer. I too had an instructor that had more manufacturing knowledge and not much experience with the financial services industry at the time. One day the light went on for me when the realization came that “the customer” doesn’t always have to be external, but could very well be the internal customer. In my current project, the customer is the internal loss prevention and recovery department and it’s their requirements with the current loss prevention and recovery process that we are delving in to.

    Good luck!
    L3

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    #189680

    B2B
    Participant

    I worked at a financial institution and worked a couple of BB projects in the collections, loss mitigation department. My customer was the Board of Directors not the people who originally took out the loans. This worked out fine. The processes we focused on were the loss mitigation process and the collections/remediation processes. Both had a lot of data.

    If you are a publically held company, then your are working for the “outside” customer in the long run.

    Projects in this area typically focus on time it takes to reocver collateral and the amount of $$ you can sell the collateral for to apply against the loan.

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    #189714

    Andrew Banks
    Participant

    Since when does the customer ALWAYS have to be external, in manufacturing or otherwise?

    It certainly never hurts to ensure that you keep the “Big C” in mind, but internal customers are all some folks ever see (and therefore THEY provide the “mutually agreed upon requirements” that define quality (CTQ)). Of certainty, the internal requirements should link back to the Big C’s requirements, but they often are not explicitly stated by internal processes. This is especially true in mfg, where only one or two people in the org EVER come into contact with the Big C.

    Collections, by its nature it seems, would have an internal customer (the BOD, for example). I guess one could take the approach that the goal is to maximize the ability of the external customer to fulfill their obligation, but this is NOT necessarily a “mutually agreed upon” requirement. The current trend of folks stripping their homes of all fixtures, Cu plumbing & wire, then walking away from their mortgages is strong evidence. How do you “satisfy” this external customer? Satisfaction for them would be NOT pursuing them for repayment. Hardly a strategy for success if you’re a lender.

    Regards,

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    #189717

    Draper
    Participant

    In God we Trust.

    Everyone else, bring data.

    You’re speaking nonsense , again. You dont even work in that industry. You’re not a SME “BBinNC”

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    #189722

    Andrew Banks
    Participant

    Don, who is the customer for your collections process?

    For me, it was the CFO of the hospital speaking on behalf of the executive team and the BOD of the healthcare system. It was their requirements that determined quality.

    Many of the steps DID focus on the patient, but patient satisfaction was not what determined the success of our improvement.

    I understand that there are opinions other than mine. I even accept that I am sometimes off the mark. However, These are called “discussion” forums, which indicates that I don’t have to be right all the time, only willing to discuss ideas openly.

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